To be financially stable is everyone’s dream. However, with rising medical costs, treatment for illnesses can easily eat into your savings. Arranging funds during a medical emergency can also be a daunting task. A health insurance policy can protect you from the financial strain caused due to a medical emergency.
Health Insurance - Why Is It Important?Health insurance is an insurance product which covers the medical and surgical expenses incurred during an illness. It is an established way to provide for health-related or medical emergencies. Modern insurance plans cover up to 30 critical illnesses. A health insurance plan is a trusted way to ensure a healthy and financially stable future.
Features of Health InsuranceThe most notable features of a modern health insurance plan are-
1. CoverageInsurance plans offer comprehensive coverage for all expenses that can be occurred during any health-related emergency. It includes hospitalisation charges, post-hospitalisation charges, ambulance expenses all under a single policy. Critical illnesses like cancer, kidney failure, and stroke are also covered for in a health insurance plan.
2. Renewal discountsA No Claim Bonus is provided to the person insured in the following year if no claim has been made against the policy in the previous year. This bonus can be in the form of a high discount of the premium or the sum assured can be increased. Some insurers also provide a free check-up if there is a good record of no-claim bonuses.
3.Co-paymentCo-payment is an option provided by most insurers that helps to decrease the yearly premium. A percentage of the total expenses is paid by the insured while the insurance company pays the balance.
4. Tax benefitsAmong the lesser known health insurance benefits, is that under section 80D of the Income Tax Act, 1961, health insurance policies entitle you to receive tax benefits.The premium paid for a health insurance policy is tax deductible, both for your own policy or for your family members.
5.FlexibilityAn insurance plan provides high flexibility to the insured person. Insurance buyers can reduce their premium after a certain period or can change their policy duration entirely. Health insurance providers are also willing to also adjust the terms of your insurance plan in accordance with a change in your lifestyle, like change in your marital status.
With health insurance, you can cast a safety net to protect you from financial troubles during a medical emergency. It is a sound investment to secure your financial stability in the future.
Learn more about different Health Insurance Plans here..
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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